A Merger May Increase a Bank's Expected Future Earnings or Reduce

question 33

Multiple Choice

A merger may increase a bank's expected future earnings or reduce its level of risk exposure by:

• A)improved operating efficiency.
• B)increased earnings per share.
• C)geographic or product diversification.
• D)product diversification.
• E)All of the options are correct.

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Definitions:

Economic Security

A state where individuals have the confidence that they will have the resources to meet their basic needs without undue hardship.

Roosevelt

Refers to either Franklin D. Roosevelt, the 32nd President of the United States known for New Deal programs and leadership during World War II, or Theodore Roosevelt, the 26th President known for his progressive policies and conservation efforts.

Corruption

The abuse of entrusted power for private gain.

Hollywood Films

Movies produced in Hollywood, California, known for being the historical center of movie studios and film stars in the U.S.